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A
ccorHotels Asia Pacific Chairman and CEO, Michael Issenberg, and Chief
Operating Officer Pacific, Simon McGrath, say the hospitality industry is
currently undergoing a phase of enormous change and consolidation and that
hoteliers must embrace change as a constant.
The executives were speaking at the annual AccorHotels nationwide roadshow in
Australia recently, which brought together senior leaders from across the group’s hotels,
the Qantas Lounges, Accor Vacation Club, Accor Plus and executive teams.
“Our group has gone through a remarkable 12 months,” Issenberg said. “Last year
we closed the deal with China’s Huazhu Hotels Group which gives us access to 70
million loyalty members in the leading outbound market in the region, and successfully
integrated the Raffles, Fairmont and Swissotel brands into the business, both of which
have been transformational.
“AccorHotels is now the second largest luxury operator in the world with 240 luxury
hotels in Asia Pacific and over 500 globally – and we’re already seeing the perception
shift with owners, partners, the public and our staff.
“It was also a remarkable year for growth with the addition of 86 new hotels to the
region, which is a record as well as a record year of signings, which means we have over
300 properties in the pipeline. We’re also continuing to add value through acquisitions
including in the luxury home rental sector,” he said.
Issenberg dismisses the term “sharing economy”, describing it as more of a thin digital
layer over under-utilised assets.
“ We’re looking at private rental to deliver a level of service that Airbnb doesn’t offer,”
he said. “Concierge provider, John Paul greatly enhances our Le Club AccorHotels
loyalty program services and further enables us in this market.”
Asia Pacific now accounts for 26 per cent of AccorHotels global footprint with 761
hotels and 154,000 rooms across 17 countries.
Issenberg touched on the trend of lifestyle hotels, an area the group is expanding in,
thanks to new brands including Mama Shelter, 25hours and Jo&Joe.
“ This significant change to our brand portfolio allows us to innovate more quickly
and has opened up new opportunities for development of our talent,” he said.
Issenberg went on to point out that while its digital strategy remains a key focus,
ultimately it is the way each hotel looks after its guests that is at the core of its business.
McGrath discussed the importance of embracing business change which is customer-
led in an era where social media is driving the propensity for travel, and at a time when the
tourism industry has become a leading super-growth sector for the Australian economy.
“Change will continue to be our weapon over the coming years,” he said. “ We’re
taking action to keep pace with emerging trends in our industry, whether that is bringing
people together in the heart of our hotels, integrating guest experiences beyond hotels,
ensuring that good design is not just for our high-end and
luxury hotels, and constantly looking at new concepts to
evolve our loyalty programs.”
The AccorHotels loyalty program has rapidly grown
to reach record heights, with one in 12 Australians now
members of Le Club AccorHotels, and this customer
loyalty is helping to drive a substantial level of direct
business into the Group’s hotels.
“ We are obsessive about the guest experience and
developing AccorHotels as a consumer-facing brand
through loyalty. We’re striving for a target of six million
loyalty members in Australia with 1 in 4 Australians
members of Le Club AccorHotels,” McGrath said.
“Hotel technology is no longer optional but essential
and there will be ongoing investment to ensure we are
updating systems and customer-facing platforms.”
McGrath closed the session with three key themes
that will take AccorHotels into the future to stay ahead
of its competitors, which included harnessing millennial
thinking; broadening leadership and embracing the
benefits of diversity in hotel management teams; and
enabling open communication across all facets from
guests, employees, partners and owners.
McGrath confirmed that the development pipeline in
the Pacific “remains the absolute focus of the team” and
this has been reinforced by the current pipeline strength
being at record levels.
AccorHotels has one of the strongest development
pipelines in the Pacific region, with more than 20 hotels and
3,500 rooms expected to open over the next three years.
A total of ten hotels representing 2,000 rooms
across all market segments from economy to luxury are
expected to open in 2017, with a further 11 hotels due to
open in 2018.
This growth can be attributed to AccorHotels’ above-
market performance assisted by the Group’s dynamic and
strong international brands that work together to provide
guests with the full range of hotel experiences. ■
AccorHotels’ most senior leaders in Asia-Pacific and Australasia say the hotel industry needs to adapt or get left behind.
ACCORHOTELS EXECS SAY
‘industry must embrace change’
AccorHotels executives
Michael Issenberg and
Simon McGrath
32 HM The Business of Accommodation
Insight